SELF-CONTAINTED APPRAISAL REPORTPrepared by:
Bozeman, MT 59719
Katie Rickett, ARA
Certified General Real Estate Appraiser In the State of Montana
Accredited Member of the American Society
of Farm Managers and Rural Appraisers (ASFMRA)
Effective Date of Appraisal: March 7, 2014
March 14, 2014 Emily Cooper C/o Montana DNRC PO Box 201601 Helena, MT 59620-1601 RE: Appraisal of the DNRC/Bates Property (Gallatin County, Montana) Dear Ms. Cooper, Pursuant to your request, I have personally inspected and prepared an appraisal of the real property associated with the Department of Natural Resource and Conservation property located in Gallatin County. The property is currently leased by Dan and Nancy Bates and is improved with structures that are owned by the Bates. The property described herein is comprised of one contiguous tract of land comprised of an estimated 6.64 acres. The subject property is being appraised under two hypothetical conditions and one extraordinary assumption. If the hypothetical and extraordinary assumptions are found to be false, or if the estimated acreage changes, the appraiser reserves the right to correct, or change the appraisal results and/or conclusions. The appraisal conducted herein is deemed to be a form Appraisal Report in compliance with the most current USPAP. The objective of this analysis was to estimate the Market Value of the subject property on an “as-is” basis. The maps referenced herein are for visual reference only. The property was inspected on March 7, 2014. This is effective date of the appraisal. The intended use of these appraisals is to value this property for a possible sale of the subject property. The intended users are the State of Montana, the Montana Board of Land Commissioners, and the Department of Natural Resource and Conservation (DNRC). Based on my inspection and analysis, it is my opinion that as of March 7, 2014, the estimated market value of the real property is $65,000. This value is in terms of cash and considers the fee simple ownership rights of the property. All values are exclusive of reservations of record. This value excludes specific valuation of timber, mineral or water rights; the subject market does not delineate these particular rights during sales transactions. The real property is appraised in an “as-is” condition, and the appraised value is
based on a six to eighteen month marketing period assuming the property is marketed in a proper manner. This value does not include personal property, fixtures, emblements or intangible items. The appraisal assumes the property meets all requirements of county regulations. I herewith deliver to you two original paper copies plus one electronic copy including addenda. I hereby certify that I have no interest, present or prospective, in the herein described property, and that my employment is in no way contingent upon the amount of the valuation. I certify that my opinion is based on a personal inspection of the subject property, a study of the data obtained, and my knowledge of real estate values in the subject market area. Under the current USPAP, the Conduct section of the ETHICS RULE requires the appraiser to disclose any services regarding the subject property performed by the appraiser within the prior three years, as an appraiser or in any other capacity. I have had no dealings with the subject property in the past three years. Respectfully submitted,
File No.
6.64 Acres
Gallatin County, MT
State of Montana
Terra Western Associates
P.O. Box 11950
Bozeman, MT 59719
Katie Rickett, ARA
March 13, 2014
File No.
Terra Western Associates 2014-DNRC/Bates
Report Summary 1 Scope of Work 2 General Comments 3 General Comments 4 Market Value Definition 5 Area Description 6 Map Addendum 7 AREA & REGIONAL DATA 8 AREA & REGIONAL DATA 9 AREA & REGIONAL DATA 11 AREA & REGIONAL DATA 12 AREA & REGIONAL DATA 13 AREA & REGIONAL DATA 14 AREA & REGIONAL DATA 16 AREA & REGIONAL DATA 17 AREA & REGIONAL DATA 18 AREA & REGIONAL DATA 19 LEGAL DESCRIPTION 20 Map Addendum 21 Subject Land Description 22 Subject History and Use 23 Photos 24 Photos 25 Photos 26 Photos 27 Sales Comparison Approach 28 Sales Comparison Comments 29 Reconciliation 30 Limiting Conditions 31 Certification 32 Map Addendum 33 Sale # 1 34 Sale # 1 36 Sales Adjustment 1 37 Sale # 2 38 Sale # 2 40 Sales Adjustment 2 41 Sale # 3 42 Sales Adjustment 3 45 Sale # 4 46 Sales Adjustment 4 49 Sale # 5 50 Sales Adjustment 5 53
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File No #
State/County: / Zip Code:
"As Improved" Primary Land Type:
Zoning: Primary Commodity:
FEMA Community # FEMA Map # FEMA Zone/Date:
Legal Description: SEC TWP RNG Attached
Purpose of Report:
P ro
p e
rt y
I d
e n
ti fi
c a
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Date of Inspection: Effective Date of Appraisal:
Value Indication - Cost Approach: $
Cost of Additions:Cost of Repairs: $ $
Allocation: Land: $ $ / ( %)
Land Improvements: $ $ / ( %)
$ / ( 100 %)Overall Value:
Cash Rent Share Owner/Operator FAMC Suppl. AttachedIncome and Other Data Summary: ( )Income Multiplier / (unit)Income Estimate: $
Expense Ratio / (unit)% Expense Estimate: $ Overall Cap Rate: / (unit)% Net Property Income: $
Area-Regional-Market Area Data and Trends: Subject Property Rating:
Above Avg. Below N/A Above Avg. Below N/A Avg. Avg. Avg. Avg.
Value Trend Location
Property Compatibility Improvement Rating
Effective Purchase Power Compatibility
Montana Gallatin 2 Miles West of Amsterdam
Rural Homesite N/A None
Rangeland Rural Residential
30031C 0565D 9/2/2011 Pending Survey (N2NENE) 16 1S 3E X Determine market value for the client for a possible sale of said subject property. Decision making process for possible sale of subject property/State of Montana, MT Board of Land Commissioners, & DNRC
Fee Simple excluding reservations, easements, conveyances, restrictions, and encumbrances of record.
X Entire Appraisal Process Summary
Katie Rickett, ARA inspected the subject property on March 7, 2014. Market data was researched through local courthouse records, realtors, and other market participants knowledgeable of the local market. Total acres are calculated from the Montana Cadastral Web-site and confirmed with the county assessor and legal description. Additional property and market data was researched and obtained from the DNRC web-site as well as the NRCS web-site. The sales were inspected and analyzed to arrive at an estimated value. Appropriate approaches to value were implemented.
03/07/14 03/07/14
65,000 6-18 65,000
65,000 65,000 Site 100 0 0 0 0 0 0 0 0 0 0
65,000 Site
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USPAP, Organizational, or Other Requirements Report Type: Date of Inspection: Date of Value Opinion: Date of Report: Scope of Work (Describe the amount and type of information researched and the analysis applied in this assignment. The Scope of Work includes, but
is not limited to the degree and extent of the property inspection; the extent of research into physical and economic factors affecting the property; the extent
of data research; and the type and extent of analysis applied to arrive at the opinions or conclusions. Additionally, describe sales availability & ability to
demonstrate market - "as vacant" - and "as improved" if applicable - or describe sales available to form value opinion "as completed" or proposed if requested;
describe income sources and ability of income to support existing or proposed construction; discuss extent of third party verification of RCN, if applicable.):
(Analyze and report any agreements of sale, options, or current listings as of the date of theSubject Property Sale & Marketing History: appraisal - and all sales within three (3) years prior to the effective date of appraisal. For UASFLA assignments, report the details of the LAST SALE OF THE
SUBJECT - no matter when it occurred):
Market Conditions (Volume of Competing Listings, Volume of Sales, Amenities Sought by Buyers):
Approaches to Value (Explain Approaches Used and/or Omitted):
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Summary Mar 7, 2014 Mar 7, 2014
This appraisal was performed according to the specific guidelines set forth by the current Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation. All three approaches to value were considered and developed. All opinions of value contained herein were derived in compliance with the specific guidelines aforementioned, using a level of analysis sufficient to constitute an appraisal that complies with the reporting requirements for an Appraisal Report as set forth under Standards Rule 2-2(a). This appraisal also conforms to the Code of Professional Ethics and Standards of Professional Practice of the American Society of Farm Managers and Rural Appraisers. Existing land regulations were analyzed, neighborhood trends, market demand for the existing use of the subject property; as well as alternative uses, the physical characteristics of the property, and the highest and best use. The property's legal description, acreage, tax assessment, ownership history, improvements, and zoning information were verified with Gallatin County records. The water rights appurtenant to the subject property were researched at the Montana State internet website of the Department of Natural Resources & Conservation (DNRC), and soil information was gathered from the National Cooperative Soil Survey maintained by the Natural Resources and Conservation Service (NRCS) web-site. Numerous publications and periodicals, referenced within the body of this appraisal report were consulted for information regarding such factors as soil properties, vegetative range types, building construction costs, and building depreciation. In addition to information contained within our office files, the appraisers searched the local area and competing areas for the most recent sales data in the subject area. A number of area property owners, real estate brokers, and other appraisers knowledgeable of this market were contacted in order to secure comparable sales data. All sales were verified with the buyer, seller, agents, or other parties having knowledge of the transaction.
There has been no activity on the subject property in the past three years as the property is currently owned by the State of Montana.
A market search was completed for this assignment and several listings of comparable size and location were found, with two new comparable sales being confirmed and used in this report. The Gallatin Valley market is seeing more activity than in the prior years of 2009-2010.
All three approaches to value have been considered for the subject property, however, the Sales Comparison Approach is the only approach that is felt to be reliable enough to use in this particular market. Rural Residential properties in the market area do not have any viable economic use relative to rental values. As described, while some are used for agricultural grazing the fees generated by such uses do not justify, nor are they relevant to, an economic valuation of properties, and cannot support land values commanded in this investment oriented market. As such, a valuation of the subject property by the Income Approach is not applicable. Furthermore, since the subject is being appraised as if unimproved, the Cost Approach becomes a redundancy of the Sales Comparison Approach and thus not applicable to this appraisal.
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Continued from Scope of Work : Comparable sales were inspected to the extent possible. Trespass was avoided and owner permission was obtained when feasible. At a minimum, a "drive-by" inspection was made along public roadways. Montana is a nondisclosure state; thus, aside from sale notices or deeds, no sales data is of record. No sale prices are reported and the Appraiser must personally confirm sale values. I have made a diligent effort to correctly ascertain the circumstances and values surrounding each sale, and data provided by professional third parties is considered reliable. The investigation of this appraisal report included confirmation of sales with buyers, sellers, real estate professionals, plus inspecting each sale. The photographs in this report are digital photographs and were not changed or manipulated in any manner. Information on market data was gathered, confirmed, and analyzed. Data relating to the subject was also analyzed and gathered. The Sales Comparison, Cost, and Income Approaches to value were considered. To develop the opinion of value, I performed a complete appraisal process as defined by USPAP under the appraisal reporting Rule 2-2(a). In developing a summary appraisal report, an appraiser uses or considered all applicable approaches to value, and the value conclusion reflects all known information about the subject property, market conditions, and all pertinent available data.
USPAP includes a competency provision that states:
The Uniform Standards of Professional Appraisal Practice (USPAP) require that prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience necessary to complete the assignment competently; or alternatively: 1. Disclose the lack of knowledge and/or experience to the client before accepting the assignment; 2. Take all steps necessary or appropriate to complete the assignment competently; and 3. Describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.
Katie Rickett, ARA has been involved in the appraisal of rural real estate in the State of Montana, South Dakota, and North Dakota since 1998. I am familiar with the geographic area in which the subject property is located and understand the nuances of the local market and the supply and demand factors related to the specific property type and the location involved. I have been engaged in many appraisal assignments involving properties similar to the subject property and believe I am qualified and competent on the basis of my knowledge and experience to complete this assignment competently. Please refer to my qualifications, which are attached in the Addenda of this report.
Hypothetical Condition: As Instructed, we are appraising the subject property under a Hypothetical Condition. A Hypothetical Condition is defined by the Uniform Standards of Professional Appraisal Practice as: " a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis."
Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.
The hypothetical condition that is being used in this appraisal is the subject is unimproved. As the subject property currently exists it has improvements on the property that include two houses, two shops, a barn, a detached garage, and several grain bins. The subject is being appraised as vacant land with no improvements, no wells, no septic systems, and no fencing.
The second hypothetical used in this appraisal is that the subject property is a 6.64 acre lot that is a legal lot and available to sell separately as such.
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Additional Comments
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As defined by the 2013-2014 Uniform Standards of Professional Appraisal Practice: an assumption, directly related to a specific assignment, as of
the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions.
Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or
economic characteristics of the subject property; or about conditions external to the property,
such as market conditions or trends;or about the integrity of data used in an analysis.
The extraordinary assumption being used in this appraisal is that the subject acreage given to the appraiser is the correct acreage of 6.64 acres. If
this is found to be not the true acreage once the survey is complete, the appraiser reserves the right to correct this appraisal.
If the hypothetical and extraordinary assumptions are found to be incorrect or are changed in any way the appraiser reserves the right to correct this
appraisal as the changing of said hypothetical and extraordinary assumptions will affect the out come of the final opinion of value.
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Reform, Recovery and Enforcement Act (FIRREA)
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale,
the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in
this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their best interests;
3. A reasonable time is allowed for exposure on the open market;
4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements
comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.
Other:
EXPOSURE AND MARKETING TIME ESTIMATES
Market value (see above definition) conclusion and the costs and other estimates used in arriving at conclusion of value is as of
the date of the appraisal. Because markets upon which these estimates and conclusions are based upon are dynamic in nature, they
are subject to change over time. Further, the report and value conclusion is subject to change if future physical, financial, or other
conditions differ from conditions as of the date of appraisal.
In applying the market value definition to this appraisal, a reasonable exposure time of months has been estimated.
Exposure time is the estimated length of time the property interest being appraised would have been offered in the market prior to the
hypothetical consummation of a sale at market value on the effective date of the appraisal; exposure time is always presumed to
precede the effective date of the appraisal.
Marketing time, however, is an estimate of the amount of time it takes to sell a property interest at the market value conclusion during
the period after the effective date of the appraisal. An estimate of marketing time is not intended to be a prediction of a date of sale. It
is inappropriate to assume that the value as of the effective date of appraisal remains stable during a marketing period. Additionally,
the appraiser(s) have considered market factors external to this appraisal report and have concluded that a reasonable marketing
time for the property is months.
Comments:
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Up Stable Down
Above Avg. Avg. Below Avg. N/A Cropland Units:
Off Property Employment: Livestock Units:
Unlikely Likely Taking Place Recreational Tracts:
Change in Economic Base:
A re
a -R
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Specific Market Area Boundaries:
Type Avg. Avg. Avg. N/A
Up Stable Down Property Compatability
Value Trend Effective Purchase Power
Sales Activity Trend Demand
Population Trend Development Potential
M a
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Hay Crops, Beef Cattle, Wheat, Barley, Potatoes, milk, corn, sorghum.
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Gallatin County is one of Montana's most productive agricultural regions. It extends from the town of Sixteen and near the head-waters of the Missouri River on the north boundary, to the south of the northern boundary of Yellowstone National Park. The 2013 population of the county is estimated at 92,614, a 3.5% increase since the 2010 Census, over its 2,605.84 square miles in size. There are 34 people per square mile. The topography of consists of a level to rolling agricultural valley formed by the Bridger, Gallatin, and Madison Ranges of mountains. Several rivers, creeks, and streams meander through the county. The portion of the mountains within Gallatin County is home to several national parks, providing year round recreational uses. Gallatin County is bounded on the north by Broadwater and Meagher Counties, on the east by Park County, on the south by Yellowstone National Park, and the west by Madison, Jefferson, and Broadwater Counties. Much of the area within Gallatin County is under agricultural production, with the foothills and mountains used as rangeland and recreational lands. The acreage of Gallatin County is owned by 42.9% Federal ownership, 3.8% is State owned, and 52.4% is Private ownership (0.8% water). See following comment pages.
6-18 Gallatin County in the area of the Gallatin Valley.
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Bozeman
The city of Bozeman is the Gallatin County seat and a population estimate of 38,695 in 2012, which is the fourth largest city in the state, a 33%
increase in population in the past decade. Bozeman is located at an altitude of 4,820 feet, surrounded on three sides by five mountain ranges and
vast productive agriculture cropland to the west. Bozeman is home to Montana State University, the local newspaper is the Bozeman Daily
Chronicle, and daily commercial air flights out of Yellowstone International Airport at Gallatin Field, located eight miles west of Bozeman, in
Belgrade.
The community in the general area of the subject property, as well as throughout western Montana, has changed in composition and population. In
many communities such as the subject's, where agricultural use and ownerships have traditionally predominated, recent developments in the land
market over the past ten to twenty years have increased the number and influence of alternative land users and property uses. Many counties of
western Montana are growing in population; development within these areas, and particularly rural residential development, was been steadily
increasing.
Bozeman, Montana has been named the "Best Little City to Retire To," one of the "Top 10 Cities in the U.S. to live," the "Top Recreational City in
America" and Outside Magazine quotes famous movie stars stating that Bozeman is the new place to be. There have been an influx of new
residents who can sustain even in the coldest winters and the population is steadily growing due to the shifting "greener attitude" in the Gallatin
County area. Bozeman was named the "Healthiest City in Montana" in a summer 2010 survey of health. It has become nationally and
internationally known. The greater Bozeman demographic area is approximately 115,000 people throughout the Gallatin Valley. The airport
reports numerous travelers flying to and from Europe and other countries each day from the local Gallatin County and Bozeman areas. The area
has become well known for its recreational attributes, quality of life, and Montana State University has become a top university offering the best
"bang-for-your-buck" education.
Belgrade
Belgrade, Montana is located eight miles northwest of Bozeman, along Interstate 90, and is a bedroom community to the Bozeman area. Home
prices are more affordable in Belgrade and building has been strong over the years. New subdivisions south and north of Belgrade continue to be
developed. The 2013 population estimate for Belgrade is 7,556. It seems the Belgrade area is supported by more industrial types of industries and
agriculture. The Bozeman Chronicle stated Belgrade has doubled in population since 1990 and it is predicted to double again by 2015. The City of
Belgrade has a Zoning ordinance installed by the Planning Commission.
Manhattan
The town of Manhattan, Montana is located just west of Belgrade along Interstate 90, and part of the Bozeman Metropolitan Statistical Area. The
area is a prominent area for family potato and dairy farms of Dutch ethnicity, and Manhattan had an estimated 1,520 residents in 2013. Annual
special events and festivals are held celebrating the area's heritage and rural lifestyles, like the Potato Festival.
Three Forks
Three Forks, Montana is a town of 1,892 residents estimated in 2013, located approximately 25 miles west of Bozeman at the intersection of
Interstate 90 and U.S. Route 287 in Gallatin County. The town of Three Forks is part of the greater Bozeman demographic area of approximately
115,000 people. Three Forks has increased in size due to the healthy economy of Bozeman, and real estate is more affordable located at the
perimeter of this economic demographic area. Many major subdivisions such as Rolling Glen Subdivision are expected to increase the city's
population putting a burden on area schools, and law enforcement.
Named for its water resource area, where the Jefferson, Madison, and Gallatin Rivers converge to form the Missouri River, the longest single river
in North America. These blue-ribbon trout fishing rivers draw fishermen and hunters to the area. The town has the 9-hole Headwaters Public Golf
Course, medical and dental facilities, schools, an airport, a library, and a museum. The Lewis and Clark Caverns are located near Three Forks.
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elevation and is adjacent to Yellowstone National
Park. West Yellowstone is one of five Yellowstone
National Park entrances; known as the 'West' entrance
in the enclosed chart. The combination of the West
and North entrances to the Yellowstone National Park
generates a great tourism economy to the Gallatin
County area.
GALLATIN COUNTY
Location
Gallatin County is one of Montana's most productive agricultural regions. It extends from the
town of Sixteen and near the head-waters of the Missouri River on the north boundary, to the
south of the northern boundary of Yellowstone National Park. The 2013 population of the county
is estimated at 92,614, a 3.5% increase since the 2010 Census, over its 2,605.84 square miles in size.
There are 34 people per square mile.
The topography of consists of a level to rolling agricultural valley formed by the Bridger, Gallatin,
and Madison Ranges of mountains. Several rivers, creeks, and streams meander through the
county. The portion of the mountains within Gallatin County is home to several national parks,
providing year round recreational uses. Gallatin County is bounded on the north by Broadwater
and Meagher Counties, on the east by Park County, on the south by Yellowstone National Park,
and the west by Madison, Jefferson, and Broadwater Counties. Much of the area within Gallatin
County is under agricultural production, with the foothills and mountains used as rangeland and
recreational lands. The acreage of Gallatin County is owned by 42.9% Federal ownership, 3.8% is
State owned, and 52.4% is Private ownership (0.8% water).
Rural residential subdivision and development, suburban development, and small tract intensive
subdivision exponentially increased during 2005-2007. The building boom slowed during the
recession in 2008 and began to pick up in late 2012. The Bozeman area has never had such a
limited amount of rental units available for the increased demand of growth. Many bank-owned
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AREA & REGIONAL DATA
subdivisions were purchased in 2013 and new home construction has reported a 12% appreciation
for homes in the Bozeman area year-to-date 2013.
Water Supply
Water used for crop production in Gallatin County comes from three sources: rainfall, local rivers
and streams and ground water sources. Most irrigation water comes from surface water sources
like rivers or streams. The actual amount applied in any one year from any one of these sources
may vary considerably, depending on rainfall and local stream runoffs. The Gallatin Valley
requires irrigation water for approximately 112,000 acres, or 12% of all agricultural acreage,
maintained and regulated by numerous irrigation ditch companies.
Recreational water is in abundance and runs through both public and private lands. There are
several primary fishing rivers within Gallatin County. The Main, East, and West Gallatin Rivers
course through the county, as well as portions of the Madison River and the Missouri River. The
Missouri River headwaters begin here with the confluence of the Jefferson River, Madison River,
and the Gallatin River just north of Three Forks, Montana.
Climate
Bozeman's average yearly temperature is 56.3 degrees Fahrenheit, with temperatures ranging from
65-85 degrees in the summer to 0-45 degrees in the winter. Located at an elevation of 4,793 feet
above sea level, winters can be brisk, with plenty of snowfall (83.5 inches average per year). The
average temperature is 12.0 degrees in January, but is ever changing. Cold snaps from the arctic
can bring days of below zero weather; however, those days are often followed by Chinook winds
which bring above average warmth. Spring comes slow and late to the Gallatin Valley. Over 1/3 of
the area's annual precipitation comes in May and June, and snow is not uncommon even in these
spring months. Once summer arrives, the days are usually sunny and warm, with the mean
August temperature at 81.2 degrees Fahrenheit. Growing seasons average 107 days with 115 days
down on the croplands of the valley-floor; the last killing frost is usually at the end of May, and the
first killing frost of the autumn usually arrives at the beginning of September.
Climate data for Bozeman - Montana State University
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
Average high °F 31.7 35.5 42.7 53.9 63 71.6 81.3 80.3 69.3 57.6 42.2 33.6 55.23
Average low °F 12.0 15.3 21.4 30.4 38.4 45.2 51.1 49.5 41.2 32.9 22.2 14.5 31.18
Precipitation inches 0.87 0.73 1.34 1.89 2.89 2.91 1.35 1.25 1.71 1.54 1.12 0.88 18.48
Source #1: NOAA (normal, 1971-2000)
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Recreational and Aesthetic Features In September 2007, Bozeman was recognized as a micropolitan "best little city." Outside magazine in 2012 awarded Bozeman the second best North American snow skiing destination, and has in the past listed Bozeman as one of the great sporting towns in the nation. Two downhill ski resorts, Bridger Bowl and Big Sky, are less than an hour's drive from the city and cater to all levels of skiing ability. In addition to downhill skiing, two cross-country ski areas with groomed trails, as well as miles of unmaintained wilderness trails, make this sport a natural in the area.
The National Forest Reserve includes 37% or 597,244 acres of Gallatin County's total acreage, providing opportunities for hiking, camping, kayaking, canoeing, biking, hunting and world class blue ribbon trout fly-fishing on the Gallatin, Madison, and Jefferson Rivers. Located at the edge of mountains and prairie, the landscape laced with pristine streams and rivers, Bozeman offers access to a diversity of wildlife habitats and species. The National Forests are important to the area for timber production and rangeland grazing, competing with the recreational use.
Yellowstone National Park has only 4% of land located in Montana, yet three of the five entrances are from Montana communities, creating strong economic importance to each community area, as well as Montana's tourism economy. In 2012 Yellowstone National Park had a record 3.45 million visitors, and 66% of these visitors entered the Park through Montana (33% from the West entrance in Gallatin County). In addition to the Yellowstone National Park, wild lands managed by the U.S. National Forest Service, the Montana Department of Fish, Wildlife and Parks, the U.S. Fish and Wildlife Service, and private agricultural interests provide wildlife hunting, photographic, and viewing opportunities for many species. Elk, bighorn sheep, mule and white-tailed deer, coyote, pronghorn antelope, bald and golden eagles, moose, mountain goat, black and grizzly bear, and an array of less obvious but no less remarkable animals still find suitable range and habitat here.
Each autumn, birds of prey concentrate along the Bridger Mountains north of Bozeman in their migration south, with 17 species of raptors observed here between late August and early November. This site hosts the largest concentration of migrating golden eagles in the lower 48 states, with daily counts of over 200 eagles possible during early October. The season starts with a trickle of ospreys and falcons, climaxes with hundreds of golden eagles and sharp-shinned hawks, and trails off with bald eagles and rough-legged hawks.
Within the city limits, the City of Bozeman Recreation Department provides a full range of after-school and summer programs for children and adults. Throughout the community there are 23 parks and recreation areas, indoor and outdoor swimming pools, 17 public tennis courts, and three golf courses (one public, two private).
Population In the past the general area has been regarded as a stable community that experiences large influxes of tourists and part-time residents during the summer and fall months. The recreational features of the area are world renowned. Much of the attraction of the area is related to natural resource features, including national forest and public lands related to the general Greater Yellowstone Ecosystem. Recent reports published by the Greater Yellowstone Coalition, based in Bozeman, Montana, indicate that the twenty counties surrounding the national park are experiencing rapid growth. This ecosystem area, which covers approximately 18 million acres in Wyoming, Montana, and Idaho, encompasses all or part of twenty counties, two national parks and six national forests. The GYC notes that the type of development occurring in the area over the past ten to twenty years has been fiscally demanding on counties and local governments. Recent studies in the Gallatin Valley area indicate that for every dollar derived from residential property tax, county governments and schools spend an average of $1.45 to provide services.
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Educational and Cultural Activities Bozeman is the home of Montana State University-Bozeman, a regional center for research and the development of new technology. Nearly 15,500 undergraduate and graduate students from all 50 states and 47 foreign countries are enrolled at MSU- Bozeman. The university is a four-year public, comprehensive land grant institution offering programs in basic sciences, agriculture, architecture, business, nursing, education and engineering. The university, on its 1,170-acre campus, employs 700 faculty members, with another 500 professionals engaged in academic research and extension activities at the university. Summer courses, computerized study, night and late afternoon classes are available for students of all ages through the Extended Studies program.
The U.S. Department of Education twice named Bozeman High School as one of the outstanding schools in America, and the middle school also recently received that distinction. The average Bozeman student scores 1,015 on the Scholastic Aptitude Test -- 115 points above the national average. Over 96% of all BHS students graduate, in comparison with 71% nationwide.
Bozeman's seven elementary schools have each developed their own unique focus, while maintaining an excellent basic education. Hawthorne is the "School for the Arts;" Longfellow is teaching Spanish throughout the curriculum; Irving is a designated "International School;" and Emily Dickinson offers integrated programs for multiply handicapped children. Along with these public schools, the Bozeman area also has several private schools.
The Museum of the Rockies showcases renowned exhibits, including a recently excavated Tyrannosaurs Rex skeleton, and offers daily shows at the Taylor Planetarium. Permanent exhibits on geology, archaeology, history and paleontology interpret the natural and cultural history of the region.
There are two libraries available to residents and visitors to the area. Bozeman Public Library has 59,000 volumes, while MSU-Bozeman's campus library, open to the public, has over 600,000 volumes and journals.
Entertainment opportunities include performances by the university theater department, the Bozeman Symphony, Bozeman Intermountain Opera, the Montana Ballet Company, the Shakespeare in the Parks program, and the Vigilante Theater Company. The Emerson Cultural Center is a frequent host to visiting performers, from modern dance performances to Native American traditional drumming and dance events. Annual events of interest occurring in Bozeman include the Montana Winter Fair, the College National Finals Rodeo, the Sweet Pea Festival, MSU Indian Club-hosted Powwow and the Christmas Stroll.
Access and Transportation Gallatin County's transportation corridors provide access to areas throughout the United States and Canada; providing a central located to all marketing sectors. The Yellowstone International Airport underwent a major expansion in 2011 and continues to add flights to major hubs throughout the country and connections to the world, supporting a growing community of business commuters residing in Gallatin County.
Overnight service via the U.S. Postal Service, Federal Express, and UPS are available. Manhattan, Belgrade, and Bozeman are all located along Interstate 90, a major east-west corridor, and US Highway 191, a major roadway to Yellowstone National Park runs north-south through the county. Bozeman is also served by Montana Rail Link (formerly Burlington Northern), Greyhound bus lines, and local bus and taxi services.
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Rural residential development and suburban development, as well as rural recreational investment properties have dominated the market in the
past. With the number of sales down at the present time there is no one land class or use that is dominating the market. The highest and best use of
rural foothill, valley agricultural, and river bottom land areas have transitioned from agricultural uses to subdivision, development, exclusive
homesites, and recreational investment uses. This trend will likely continue as Bozeman and the Gallatin Valley has been one the new trendy areas
for relocation. However, many of the pre-platted subdivisions that were in agricultural areas have never been developed and the return of the
highest and best use to agriculture, speculative investment, and/or rural recreational is a common theme right now. Agriculture will continue to be
a major industry in Gallatin County as there are long-time family farmers that are well entrenched and they also continue to purchase add-on
plottage to expand their operations. Gallatin County is a mixed use county where all residents are trying to manage the uses in the area.
Area Prestige
This area has become well known for its recreation attributes. It has outstanding elk, bear, deer, antelope and game bird hunting, as well as
blue-ribbon trout fishing in numerous rivers and streams. Agriculturally, it is a well-established dairy, alfalfa hay, potato, and wheat grain area.
Most of the wheat is of very high quality and used mainly for human consumption. The alfalfa hay is, also, of very high quality, and is used for
milk cow and beef cattle hay. Beef cattle are grown in the area via cow/calf operations.
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Economic Forces
Gallatin County is sustained by agriculture, mining, forestry, tourism, and the university, and
recently by construction.
Employed No. of
Unemployed Unemployment Rate
GALLATIN COUNTY 2013 Aug 52,953 51,115 1,838 3.5
Law enforcement, government and Montana State University are the three top employers in the
county by business that employ the greatest number of individuals.
Agriculture
Agricultural lands are 46% of Gallatin County's total acreage of 1,685,600 acres.
2007 Census
Average Farm size 725 acres
Montana Ag Stats 2010-11 State Ranking / 56 Counties
Products Sold $122.753 million 7th
Crops Sold (61.8%) $ 75.887 million 7th
Livestock Sold (38.2%) $ 38.674 million 12th
Spring Wheat 35,400 acres 59.3 bu/ac 15th
Winter Wheat 20,700 acres 59.6 bu/ac 17th
Barley 27,500 acres 68.3 bu/ac 5th
Potatoes 3,850 acres 340 cwt/ac 1st
Alfalfa Hay 42,000 acres 3.50 ton/ac 9th
Other Hay 11,000 acres 2.00 ton/ac 22nd
Milk Cows 4,000 head 1st
Beef Cows 51,000 head 20th
Sheep 2,700 head 28th
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AREA & REGIONAL DATA
Gallatin County hay is of high quality and is used as milk cow hay on dairies throughout the
county. The hay is also used as winter feed for beef cattle.
Bovine brucellosis is a contagious, infectious and communicable disease which results in the
abortion of the fetus. Brucellosis infects elk, bison, domestic buffalo, and domestic cattle and is
transmitted between the species. All 50 U.S. states are currently designated Class Free for
brucellosis, yet the Greater Yellowstone Area is the only known location where brucellosis is still
present in the U.S. Thus, the Brucellosis Designated Surveillance Area has been defined to monitor
the level of transmission of brucellosis from wildlife to livestock. The USDA estimates a State
Class status downgrade from Brucellosis Free would cost Montana producers 5.9 to 11.9 million
dollars each year.
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AREA & REGIONAL DATA
Health Care Bozeman Deaconess Hospital opened its new facility in June of 1986, and is a modern, well-equipped hospital with acute-care beds. Services include respiratory therapy, sleep lab, home care/hospice, radiology, special imaging, laboratory, obstetrics and nursery, inpatient and retail pharmacy, physical therapy, cancer treatment, and cardiopulmonary rehabilitation services. Occupational therapy and speech therapy services are offered through contracts. Major expansions in 1992 -1994, 1998 - 1999, 2004-2006, and 2010 have added substantial professional medical space to the facility and most major medical practices are now located at the medical complex. This community of professionals is served directly by the downtown business area, as the complex is located in the eastern end of town and away from other, potentially competitive, commercial areas on Bozeman's west side.
Zoning Gallatin County does have 22 Zoning Districts installed throughout the county regulating residential growth. There is no county zoning in the Gallatin County that affects the subject property, however, if building is being considered in the county a septic system permit is required by the county and a state plumbing and electrical permit is required as well.
Government Considerations
State Data
Montana's July 2013 population estimate is reported at 1,015,165 people residing in the state an increase of 13.8% over 2000 and is a 2.4% increase from the 2010 Census. Population density measuring people per square mile was 6.8, dropping from 48th to 49th nationally. The total land area of Montana is approximately 145,546 square miles or over 93 million acres, with 64.1% of the state contained in farm and ranch lands, a total of 28,600 farms, averaging 2,056 acres, as reported from USDA in 2012. Montana's 2012 agricultural sector output was approximately 4.743 billion dollars, and the states number one industry. It is estimated that 80% of Montana's population is employed by agriculture and small businesses, which constitute 90% of the state's business community. Of these small businesses, 80% have one or two owners and less than ten employees.
The Montana Tourism Commission reported 10.8 million tourists visited Montana in 2012, spending an average of $308 per tourist and a total of $3.2 billion to the Montana economy.
The state of Montana owns approximately 6% of the state lands, and the federal government owns 29.1%. Indian reservations hold 5.3% of the state, with the remaining 58.7% privately held, with the remaining 0.8% being water. Of the 29.1% federal ownership, approximately 18% is under National Forest Service control, with 8.7% under the Bureau of Land Management and approximately 3% contained in other divisions.
Taxes
The State of Montana, through the Department of Revenue, is responsible for valuing all taxable real estate and personal property in the state. This property valuation is accomplished by appraisal/assessment offices located in each county in Montana. The amount of property tax is determined by multiplying the assessed value by a tax rate, set by legislature, to determine its taxable value. Taxable value is then multiplied by the mill levy established by the various taxing jurisdictions- city and county government, school districts, and others- that provide services in the area.
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Montana Agriculture
Of the approximately 60 million acres in use as farm and ranch lands, 66% is comprised of rangeland, with 30% containing croplands. The total number of farms and ranches in the state of Montana has continually decreased since 1933, when there were 53,000 units. The Montana 2013 Agriculture Statistics estimated there are approximate 28,600 farms and ranches located in the state. The average size of farms and ranches in the state is approximately 2,056 acres. Agriculture continues to be Montana's number one industry in 2012, a 9% increase from 2011. The 2012 value of crop production (60.3%) increased to $2.3 billion, a 16% increase from 2011. The 2012 value of livestock (39.7%) increased to $1.6 billion. Net government payments decreased 20% in 2012 to $239 million.
Montana ranked second in the country for land in farms with 58.8 million acres in 2012 (down 2 million acres since 2010). Texas ranked first with 130.4 million acres and Kansas ranked third with 46.2 million acres. Montana ranked thirty-first for number of farms with 28,600 while Texas ranked first with 247,500 farms. Montana ranked second behind Wyoming for average farm size with 2,056 acres.
Montana ranked third for all wheat production in 2012, accounting for 8.6% percent of the U.S. total, surpassed by North Dakota and Kansas. Montana ranked second for durum wheat, fifth for winter wheat, and second for other spring wheat production, accounting for 17.6 percent, 5.1 percent, and 17.7 percent, respectively, of the nation's total. For durum and spring wheat production, North Dakota ranked first. Kansas ranked first for winter wheat production, followed by Texas, Oklahoma, Washington, and Colorado. Montana accounted for 19.9 percent of the nation's barley, ranking third behind North Dakota and Idaho.
Montana ranked first in lentils and second in dry edible peas. With safflower production, accounting for 10.4 percent of the U.S. total. Montana ranked sixth for sugar beet production with 4.1 percent of the U.S. total, behind Minnesota, North Dakota, Idaho, and Michigan. Montana ranked third for 2012 for alfalfa hay production with 5.8 percent of the nation's total, behind California, South Dakota, and Idaho and ranked eighth in the nation for all hay produced.
Montana ranked eighth for all sheep and lamb inventory on January 1, 2013 with 235,000 head and 4.4 percent of the U.S. total, preceded by Texas, California, South Dakota, and Wyoming. Montana ranked sixth for wool production with 1.93 million pounds or 6.8 percent of the U.S. total.
Montana's all cattle and calves inventory on January 1, 2013, ranked eleventh in the nation with 2.6 million head, or 2.9 percent of the U.S. inventory (up 100,000 hd. since 2012). Montana ranked eighth for all cows with 1.52 million head, accounting for 4 percent of the U.S. total, and sixth for beef cows with 1.506 million head, accounting for 5.1 percent of the U.S. inventory.
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Map Addendum
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Above Below Subject Description: Avg. Avg. Avg. N/A
Land Use Deeded Acres Unit Type Unit Size Location
( %) Legal Access
( %) Physical Access
Climatic: " Annual Precipitation ' to ' Elevation Frost-Free Days
Utilities: Water Electric Sewer Gas Telephone
Distance To: Schools Hospital Markets Major Hwy. Service Center
Comments
2014-DNRC/Bates
The subject property is an estimated 6.64 acres. The subject is being appraised
under two hypothetical conditions and one extraordinary assumption. The hypothetical conditions are that the subject property is a legal tract and
available to sell on the open market and that the property is vacant and not improved with wells, septic systems, and improvements which include two
houses. The extraordinary assumption is that the subject property is actually 6.64 acres. Should any of these assumptions change, the appraiser
reserves the right to correct this appraisal. The subject property is located two miles west of Amsterdam. It is located on a bluff overlooking the
Gallatin Valley and has a steep drainage that bisects the western portion of the property. There is no live water except for seasonal drainages on the
subject property. There are a few trees in the southeast corner of the property but these have been planted over the years and are not original to the
property. Without the improvements the property would be an open rolling rangeland unit conducive for a rural homesite. The subject is surrounded
by dry crop and irrigated farm ground. The subject could potentially be farm ground but the steep coulee through the center would limit the available
farm ground slightly.
Irrg Land 0.0
Dry Cropland 0.0
Tame Pasture 0.0
Hay Land 0.0
2 25 8 8 25
Hypothetically there is no developed water on the property, no fences, no septic, and no improvements.
There are no hazards or detriments that materially affect the value of the subject property. The subject is susceptible to the area weather but the
surrounding area receives the same type of weather. The weed liability on the property is average for this unit in this area. Given the date of inspection,
grass and weeds have not yet started growing so the amount and type that might exist is unknown. Should this be of concern, a weed specialist should
be engaged to inspect the weeds during the growing season in order to estimate the expected liability. This appraisal assumes that the weeds are not
toxic and the appraiser reserves the right to update the appraisal should the area found to be hazardous. The Appraiser is not an expert in either the
detection of hazardous or toxic substances or structural engineering, and did not conduct an environmental audit of the subject property. The property
is being appraised assuming there are no toxic or hazardous substances present or associated with the subject property that would affect value. The
Appraiser reserves the right to reassess the situation and adjust values if deemed necessary.
22 53©1998-2014 AgWare, Inc. All Rights Reserved.
UAAR®
Previous: $
Present: $
Buyer: Currently Listed Listing Price: $ Listing Date:
H is
to ry
Zoning Change: Unlikely Probable To:
Comments:
Agricultural Land $ Current Tax $
s
Highest & Best Use is defined as that reasonable and probable use that supports the highest present value, as defined, as of the effective date of the appraisal. Alternatively, that use, from among
reasonably probable and legally alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest land value.
Analysis: (Discuss legally permissible, physically possible, financially feasible, and maximally productive uses)
Highest and Best Use: "As if" Vacant
"As Improved"
V a
lu e
M e
th o
d s
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0 1.00 0.00
X The subject property is owned by the State of Montana and thus is exempt from property taxes. As such, no
information is available.
There are no legal limitations currently affecting the subject property. It is legally available for many different uses. Given the configuration of the property and its location, it could legally support several different uses. The physically possible uses of the subject property would be open to an industrial use, a commercial use, or a rural homesite. The subject property does not have any recreational amenities that would warrant the property's use as a recreational unit. A financially feasible use is one that proves to be the most financially rewarding use of the property. The area does not demonstrate a need or use for a commercial type use (hotel, motel, resort) facility or industrial use. The highest and best use of the subject property "as vacant" would appear to be a rural homesite. This proves to be the most financially feasible and maximally productive use of the subject property "as vacant".
Rural Homesite N/A
Since the subject is being appraised "as if vacant" the Highest and Best Use of the subject property "as improved" is not applicable.
X All three approaches to value have been considered for the subject
property, however, the Sales Comparison Approach is the only approach that is felt to be reliable enough to use in this particular market. Rural Residential properties in the market area do not have any viable economic use relative to rental values. As described, while some are used for agricultural grazing the fees generated by such uses do not justify, nor are they relevant to, an economic valuation of properties, and cannot support land values commanded in this investment oriented market. As such, a valuation of the subject property by the Income Approach is not applicable. Furthermore, since the subject is being appraised as if unimproved, the Cost Approach becomes a redundancy of the Sales Comparison Approach and thus not applicable to this appraisal.
23 53©1998-2014 AgWare, Inc. All Rights Reserved.
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2014-DNRC/Bates
Photo viewing east along the north boundary of proposed lot. Photo viewing north along west boundary.
Photo viewing south along west boundary of proposed lot. Photo viewing east along possible south boundary of lot.
Photo viewing northwest towards southwest corner of
proposed lot.
boundary.
UAAR®
boundary.
Same as previous photo but viewing more east to northeast.
Photo viewing east along proposed south boundary. Photo viewing west along south boundary.
Photo viewing northwest across subject property. Photo viewing north across subject property from the
south boundary.
UAAR®
2014-DNRC/Bates
Same as previous photo but viewing more northeast. Photo viewing east along south boundary.
Photo viewing north along proposed east boundary Photo viewing south along proposed east boundary.
Photo viewing southwest across subject property from the
proposed east boundary.
northeast corner.
UAAR®
2014-DNRC/Bates
Photo viewing west along north boundary. Photo viewing southeast towards the northeast corner.
Photo viewing south across subject from the north boundary. Photo viewing southwest across subject property from the
north boundary.
Photo viewing east along the subject's north boundary. Photo viewing southwest along the subject's north boundary
and towards the northwest corner.
27 53©1998-2014 AgWare, Inc. All Rights Reserved.
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Sales Comparison Approach (1-5)
Sale Data Subject Sale #1 Sale #2 Sale #3 Sale #4 Sale #5
Grantor (Seller)
Grantee (Buyer)
Finance Adjusted
CEV Price
S a
le D
a ta
Expense Ratio
The Appraiser has cited sales of similar property to the subject and considered these in the market analysis. The description below includes a dollar adjustment
reflecting market reaction to those items of significant variation between the subject and the sales documented. When significant items are superior to the property
appraised, a negative adjustment is applied. If the item is inferior, a positive adjustment is applied. Thus, each sale is adjusted for the measurable dissimilarities and
each sale producing a separate value indication. The indications from each sale are then reconciled into one indication of value for this approach.
CEV Price/
Impvt. Adjustment
Adjusted Price
Smpl Cmp Rate
Net Adjustments
ADJUSTED PRICE
Analysis/Comments: (Discuss positive and negative aspects of each sale as they affect value)
Sales Comparison Approach Summary:
Unit Basis: $ / X = $ $
Confidential
Confidential
Broker
02/14
1
100,000
Cash
100,000
Confidential
Confidential
Broker
02/14
1
75,000
Cash
75,000
Confidential
Confidential
0.00
0.00
100,000.00
0.00
0.00
75,000.00
0.00
-162,500.00
85,000.00
0.00
-10,213.00
118,787.00
0.00
0.00
60,000.00
X
X
X
0
0.00
0.00
100,000.00
0
0.00
0.00
75,000.00
0
0.00
0.00
85,000.00
0
0.00
0.00
118,787.00
0
0.00
0.00
60,000.00
- - - - +
o - - o o
- - o - o
0 0 -162,500 -10,213 0
100,000 75,000 85,000 118,787 60,000
No time adjustment could be extracted from the market data. The area surrounding the subject property is a very tightly held farming area and
vary rarely sold, much less subdivided and sold as rural homesites. Thus, smaller acreage sales closer to Belgrade, Manhattan, and Churchill were
used to determine a value for the subject property. Given that the subject is already improved, proves that it's highest and best use as a rural
homesite is valid and a site value is used to determine the market value of the subject property. Thus, smaller acreage rural homesites were
sought in the area market. It has become evident in this market as well as others that the market is struggling to right itself since the decline in the
economy with the market being very inconsistent. The appraiser attempted to do quantitative adjustments but due to the inconsistent market data,
no consistent adjustments could be extracted. Thus, the appraiser is using qualitative adjustments. Four of the five sales are superior to the
subject for property aesthetics. Sale 5 is the most similar to the subject for terrain, views, and overall quality of property. Sale 1 at $100,000/site
is similar to the subject for size, but superior for property aesthetics as the parcel is level and close to town. Continue Next Page.
65,000.00 Acre 1.00 Site 65,000.00 65,000
28 53©1998-2014 AgWare, Inc. All Rights Reserved.
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2014-DNRC/Bates
Sale 2 at $75,000/site is a smaller property, closer to Bozeman with good subdivision roads and superior for overall property amenities. Sale 2 is
slightly superior to the subject. Sale 3 at $85,000/site is also slightly superior to the subject for location and property aesthetics/amenities. Sale 3 sold
improved with direct access off of a paved road. Property has good views similar to the subject but superior for the overall property
amenities/aesthetics. Sale 4 at $118,787/site also sold improved with a small shop. Sale 4 is superior to the subject for location, similar for size, and
overall superior to the subject for property aesthetics and amenities. Sale 5 at $60,000/site is similar to the subject for location and size but inferior for
property aesthetics/amenities. Sale 5 required intensive dirt work before the property could be built on as the property had a steep south facing slope.
Once the qualitative adjustments are made the subject property is between Sale 5 at $60,000/site to Sale 2 at $75,000/site. The two larger sales, Sales
1 and 4, at $100,000 and $118,787/site respectively at similar for size but highly superior for location and overall property aesthetics. Therefore, the
subject property is between Sales 2 and 5 with more weight give to Sale 5 as it is most comparable to the subject property as the buyers had to bring in
electric, septic, and phone into the property prior to building, as well as Sale 5 is most comparable for terrain and location. A final opinion of value is
concluded slightly above at $65,000 due to the larger size of the subject property.
Sale 1 sold for $100,000 for a 6.4 acre site. Sale 1 is located two miles west of Belgrade and approximately six miles east of the subject property.
Property was listed separately and/or together with three other six acre lots for $350,000. The four lots by themselves were listed for $100,000 each.
Electric and phone already to lots. Property is located near commercial use but area allows for single family homes and also storage units. Sale 1 is a
level lot that had electricity and phone already to the site. Sale 1 is superior to the subject property for property aesthetics and location and similar for
size. Overall, Sale 1 is superior to the subject and sets the high end of the range.
Sale 2 sold for $75,000 for a one acre site. Sale 2 is located one mile south of Belgrade and approximately nine miles east of the subject property.
Sale 2 is superior for property aesthetics and amenities, location, and size. Sale 2 was originally listed for $79,900 and sold for $75,000 or 6.13% off
list price. Property is located in a designated subdivision with power, phone, and septic already in place as there was a single wide mobile home on
site at the time of the sale. Mobile was uninhabitable. Terrain is level and offers nice views of Bridger Mountains. Overall, Sale 2 is superior to the
subject.
Sale 3 sold for $85,000 for the 1.82 acre site. Sale 3 is located six miles west of Belgrade and two miles north of the subject property. Sale 3 has
frontage on Chruchill Road. Living area is above the garage. The garage is 2,200 sf, finished, heated with 16' ceilings, two large bay doors, 400 amp
3 phase power, its own bath with tile shower and office. Living area is two bedroom, two bath, with forced air heat, hardwood floors, tile floors,
vaulted ceilings, walk in closets, surround sound, smart wiring, and air condition. Deck on north side of house overlooking farm ground and the
Bridger Mnts. No covenants. Horses are allowed as is a home business. Overall, Sale 3 is superior to the subject property.
Sale 4 sold for $118,787 for the 6.34 acre site. Sale 4 is located two miles south of Churchill and two miles southeast of the subject property. Sale 4
was originally listed for $159,000 and was on the market for 228 days. Property offers nice views of the surrounding farm land and of the Bridger
Mountains. Property is improved with a small shop that has two garage doors, is insulated, concrete floor, work bench, and a cement pad behind the
shop. Shop has no heat and power is not hooked up. The covenants allow manufactured or modular homes. Sale 4 appears to be high of the area
market and might have had some buyer motivation at the time of the sale. Overall, Sale 4 is superior to the subject property for property aesthetics and
amenities as well as location. Sale 4 sets the extreme high of the bracketed range.
Sale 5 sold for $60,000 for the 4.17 acre site. Sale 5 is located at the south side of the town of Churchill and approximately two miles east of the
subject property. Sale 5 was on the market for 37 days and was originally listed for $89,900. Property did not have electric, phone, well, or septic at
the time of the sale. The property required some intensive dirt work prior to building as the property was a south facing slope. Overall, this property
is very comparable to the subject property and is relied upon heavily when concluding a final opinion of value.
29 53
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Cost Approach $
Income Approach $
D is
c u
s s
io n
Cost of Repairs $
Cost of Additions $
Land Improvements: $ $ / ( %)
Value of Personal Property (local market basis) $
Value of Other Non-Realty Interests: $
Non-Realty Items: $ $ / ( %)
Leased Fee Value (Remaining Term of Encumbrance ) $ / ( %)$ Leasehold Value $ / ( %)$ Overall Value $ / ( 100 %)$
A ll
o c
a ti
o n
o f
V a
lu e
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The COST APPROACH is most applicable when appraised property's
improvements are new and represent the highest and best use of the land. Additionally, the Cost Approach is useful when there is a good
bank of open land sales that are dependable and reliable and when the costing information is from excellent sources. Three of the five sales
were unimproved, the remaining two sales had the land values extracted after the building contributory values were determined through
costing information and through interviews with buyers and sellers. There was good costing data available through Marshall and Swift
Valuation Guide, area builders, and local contractors. Since the subject property is being appraised as if unimproved, the cost approach
becomes a redundancy of the Sales Comparison Approach and thus not applicable to this appraisal.
The SALES COMPARISON APPROACH is based on a direct comparison of similar properties which have sold in the subject area or a
competing area. Given the nature of the market similar properties for direct pairings were not available for adjustments for all factors of value
but there was the ability to identify market supported adjustments for the components or factors affecting value as identified. The Sales
Comparison Approach was utilized in this report and is felt to be a reliable approach to value given that it is relied upon heavily by buyers and
sellers and the nature of the quantity and quality of data available.
The INCOME APPROACH is based on the stabilized net income potential of the land and market indicated capitalization rates representing
buyers' expected returns on similar properties. Properties in the area have minimal economic use relative to rental values and rents cannot
support value trends in this market which has transitioned from agricultural uses to a higher use of rural homesites. While some are used for
agricultural grazing and fee hunting, the fees generated by such uses do not justify, nor are they relevant to, an economic valuation of the
properties. As such, a valuation of properties such as the subject utilizing the Income Approach is not appropriate. Therefore, the Income
Approach is not applicable.
The appraiser employed one of the three traditional methods of estimating the market value of the subject property.
The sales used are sales that possess features and characteristics generally similar to those of the appraised property. This sales data was used
within the sales comparison to value and reflect a relatively narrow range that lends a high degree of confidence to the final appraised value.
In the final analysis, the sales comparison is deemed to be the most accurate and reliable method of valuation for the appraised property
because it is felt that it is more representative of the area market. The concluded value considers the fee simple ownership rights of the real
property described herein and is in terms of cash including land and buildings.
6-18 65,000
0 0 0 0 0 0
65,000 65,000 Site
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Assumptions and Limiting Conditions
The certification of the Appraiser(s) appearing in the appraisal report is subject to the following conditions and to such other specific and limiting conditions as are set forth in the report.
1. The Appraiser(s) assume no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the Appraiser(s) render any opinion as to title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.
2. Sketches in the report may show approximate dimensions and are included only to assist the reader in visualizing the property. The Appraiser(s) have made no survey of the property. Drawings and/or plats are not represented as an engineer's work product, nor are they provided for legal reference.
3. The Appraiser(s) are not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made.
4. Any distribution of the valuation in the report applies only under the existing program of utilization. The separate valuations of components must not be used outside of this appraisal and are invalid if so used.
5. The Appraiser(s) have, in the process of exercising due diligence, requested, reviewed, and considered information provided by the ownership of the property and client, and the Appraiser(s) have relied on such information and assumes there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The Appraiser(s) assume no responsibility for such conditions, for engineering which might be required to discover such factors, or the cost of discovery or correction.
6. While the Appraiser(s) have have not inspected the subject property and have have not considered the information developed in the course of such inspection, together with the information provided by the ownership and client, the Appraiser(s) are not qualified to verify or detect the presence of hazardous substances by visual inspection or otherwise, nor qualified to determine the effect, if any, of known or unknown substances present. Unless otherwise stated, the final value conclusion is based on the subject property being free of hazardous waste contaminations, and it is specifically assumed that present and subsequent ownerships will exercise due diligence to ensure that the property does not become otherwise contaminated.
7. Information, estimates, and opinions furnished to the Appraiser(s), and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the Appraiser(s) can be assumed by the Appraiser(s).
8. Unless specifically cited, no value has been allocated to mineral rights or deposits.
9. Water requirements and information provided has been relied on and, unless otherwise stated, it is assumed that:
a. All water rights to the property have been secured or perfected, that there are no adverse easements or encumbrances, and the property complies with Bureau of Reclamation or other state and federal agencies;
b. Irrigation and domestic water and drainage system components, including distribution equipment and piping, are real estate fixtures; c. Any mobile surface piping or equipment essential for water distribution, recovery, or drainage is secured with the title to real estate; and d. Title to all such property conveys with the land.
10. Disclosure of the contents of this report is governed by applicable law and/or by the Bylaws and Regulations of the professional appraisal organization(s) with which the Appraiser(s) are affiliated.
11. Neither all nor any part of the report, or copy thereof, shall be used for any purposes by anyone but the client specified in the report without the written consent of the Appraiser.
12. Where the appraisal conclusions are subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a workmanlike manner consistent with the plans, specifications and/or scope of work relied upon in the appraisal.
13. Acreage of land types and measurements of improvements are based on physical inspection of the subject property unless otherwise noted in this appraisal report.
14. EXCLUSIONS. The Appraiser(s) considered and used the three independent approaches to value (cost, income, and sales comparison) where applicable in valuing the resources of the subject property for determining a final value conclusion. Explanation for the exclusion of any of the three independent approaches to value in determining a final value conclusion has been disclosed in this report.
15. SCOPE OF WORK RULE. The scope of work was developed based on information from the client. This appraisal and report was prepared for the client, at their sole discretion, within the framework of the intended use. The use of the appraisal and report for any other purpose, or use by any party not identified as an intended user, is beyond the scope of work contemplated in the appraisal, and does not create an obligation for the Appraiser.
16. Acceptance of the report by the client constitutes acceptance of all assumptions and limiting conditions contained in the report.
17. Other Contingent and Limiting Conditions:
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UAAR®
File No #
Appraiser Certification I certify that, to the best of my knowledge and belief:
1. the statements of fact contained in this report are true and correct.
2. the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions,
and are my personal, impartial and unbiased professional analysis, opinions, and conclusions.
3. I have no the specified present or prospective interest in the property that is the subject of this report and
I have no the specified personal interest with respect to the parties involved.
4. I have performed no the specified services, as an appraiser or in any other capacity, regarding the property
that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
6. my engagement in this assignment was not contingent upon developing or reporting predetermined results.
7. my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined
value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated
result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
8. my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the
Uniform Standards of Professional Appraisal Practice.
9. I have have not made a personal inspection of the property that is the subject of this report.
10. no one the specified persons provided significant real property appraisal assistance to the person signing this
certification.
Appraiser:
Name: Appraiser has inspected verified analyzedLicense #: the sales contained herein.Certification #:
Date Signed:
Page of
File No. #
Map Addendum
Page of
File No #
Grantee Other Contrib. Primary Land Use
Deeded Acres Net Sale Price
Sale Date/DOM / $/Deeded Acre
Prior Sale Date Financing
Analysis Code CEV Price
Source SCA Unit Type
Motivation Eff. Unit Size
Address Multiplier Unit
City Multiplier No.
County Legal Access
State/Zip / Physical Access
is
Land-Mix Analysis Land Use Ratios Acres $/Acre Unit Size Unit Type $/Unit Total Unit Value
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
Income Analysis Income Estimate Basis: Cash Share Owner/Operator
Income Source Unit Stabilized Total Production Cash/Share/Owner Income
Actual Estimated Units Measure Yield Stabilized $/Unit Gross Income Share % Income $
Improvements Improvements Included in Land Rent /mo /yr
Stabilized Gross Income = $
Real Estate Tax $ $ $
In c
o m
e A
n a
ly s
Page of
T1S, R4E, Section 10: Parcel 3 of COS 1779C.
West on Amsterdam Road to Countryside Lane, turn south property on the east.
Irrg Land
Dry Cropland
File No #
Improvement Analysis
Item: Impt. #1 Impt. #2 Impt. #3 Impt. #4 Impt. #5 Impt. #6 Impt. #7 Impt. #8 Impt. #9 Impt. #10
Type
Size
Unit
Utility
Condition
Age
% Functional Obsolescence
% External Obsolescence
Total RCN $ Total Improvement Contribution: $ Improvement As % of Price %
C o
m m
e n
1282 1
Property was listed separately and together with three other six acre lots for $350,000. The four lots by themselves were listed for $100,000 each.
Electric and phone already to lots. Property is located near commercial use but area allows for single family homes and also storage units.
35 53©1998-2014 AgWare, Inc. All Rights Reserved.
UAAR®
UAAR®
File No #
Sales Comparison Approach - Land Adjustment for Sale# 1 Adjust each sale to the subject's land mix (land adjustment) using unimproved sales. This page allows for a "quantitative land adjustment" only.
Sales Comparison - Sale #1 Land Adjustment Amt. $
Land Use Sale Acres $/Acre Sale Unit Type Sale Units $/Unit Subj. Acres $/Acre Subj. Unit $/Unit Total
Sale Land Contrib. / Eff. Unit Size = Total / Eff. Unit Size =
Sales Comparison Approach - Improvement Adjustment for Sale# 1 Compare each set of sale improvements to the subject improvements making judgments regarding utility and condition. Then arrive at an improvement adjustment for each sale on a per acre or per unit basis. These adjustments are shown on the Sales Comparison Grid. Note: Appraiser must manually enter the $/Unit for the Subject Improvements -- either individually or as a lump sum.
Sales Comparison - Sale #1 Improvement Adjustment Amt. $: /
Sale Impt. Utl/Cond. Size X $/Unit Contrib. Value Subject Impt. Utl/Cond. Size X $/Unit Contrib. Value
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
Total Improvement Value = $ / Total Improvement Value = $ /
Page of
Leases
Recreation
1 0.00 Site
UAAR®
Grantee Other Contrib. Primary Land Use
Deeded Acres Net Sale Price
Sale Date/DOM / $/Deeded Acre
Prior Sale Date Financing
Analysis Code CEV Price
Source SCA Unit Type
Motivation Eff. Unit Size
Address Multiplier Unit
City Multiplier No.
County Legal Access
State/Zip / Physical Access
is
Land-Mix Analysis Land Use Ratios Acres $/Acre Unit Size Unit Type $/Unit Total Unit Value
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
Income Analysis Income Estimate Basis: Cash Share Owner/Operator
Income Source Unit Stabilized Total Production Cash/Share/Owner Income
Actual Estimated Units Measure Yield Stabilized $/Unit Gross Income Share % Income $
Improvements Improvements Included in Land Rent /mo /yr
Stabilized Gross Income = $
Real Estate Tax $ $ $
In c
o m
e A
n a
ly s
Page of
13 1S 4E
T1S, R4E, Section 13: Yukon Subdivision Phase 2. Block 1, Lot 17
Irrg Land
Dry Cropland
File No #
Improvement Analysis
Item: Impt. #1 Impt. #2 Impt. #3 Impt. #4 Impt. #5 Impt. #6 Impt. #7 Impt. #8 Impt. #9 Impt. #10
Type
Size
Unit
Utility
Condition
Age
% Functional Obsolescence
% External Obsolescence
Total RCN $ Total Improvement Contribution: $ Improvement As % of Price %
C o
m m
e n
1281 2
The property was originally listed for $79,900 and sold for $75,000 or 6.13% off list price. Property is located in a designated subdivision with power,
phone, and septic already in place as there was a single wide mobile home on site at the time of the sale. Mobile was uninhabitable. Terrain is level
and offers nice views of Bridger Mountains.
39 53©1998-2014 AgWare, Inc. All Rights Reserved.
UAAR®
40 53
Photo viewing northeast across lot. Trailer was given no value at the time of the sale as it was uninhabitable.
©1998-2014 AgWare, Inc. All Rights Reserved.
UAAR®
File No #
Sales Comparison Approach - Land Adjustment for Sale# 2 Adjust each sale to the subject's land mix (land adjustment) using unimproved sales. This page allows for a "quantitative land adjustment" only.
Sales Comparison - Sale #2 Land Adjustment Amt. $
Land Use Sale Acres $/Acre Sale Unit Type Sale Units $/Unit Subj. Acres $/Acre Subj. Units $/Unit Total
Sale Land Contrib. / Eff. Unit Size = Total / Eff. Unit Size =
Sales Comparison Approach - Improvement Adjustment for Sale# 2 Compare each set of sale improvements to the subject improvements making judgments regarding utility and condition. Then arrive at an improvement adjustment for each sale on a per acre or per unit basis. These adjustments are shown on the Sales Comparison Grid. Note: Appraiser must manually enter the $/Unit for the Subject Improvements -- either individually or as a lump sum.
Sales Comparison - Sale #2 Improvement Adjustment Amt. $: /
Sale Impt. Utl/Cond. Size X $/Unit Contrib. Value Subject Impt. Utl/Cond. Size X $/Unit Contrib. Value
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
Total Improvement Value = $ / Total Improvement Value = $ /
Page of
Leases
Recreation
2 0.00 Site
UAAR®
Grantee Other Contrib. Primary Land Use
Deeded Acres Net Sale Price
Sale Date/DOM / $/Deeded Acre
Prior Sale Date Financing
Analysis Code CEV Price
Source SCA Unit Type
Motivation Eff. Unit Size
Address Multiplier Unit
City Multiplier No.
County Legal Access
State/Zip / Physical Access
is
Land-Mix Analysis Land Use Ratios Acres $/Acre Unit Size Unit Type $/Unit Total Unit Value
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
% Ac. X $ = $
Income Analysis Income Estimate Basis: Cash Share Owner/Operator
Income Source Unit Stabilized Total Production Cash/Share/Owner Income
Actual Estimated Units Measure Yield Stabilized $/Unit Gross Income Share % Income $
Improvements Improvements Included in Land Rent /mo /yr
Stabilized Gross Income = $
Real Estate Tax $ $ $
In c
o m
e A
n a
ly s
Page of
Irrg Land
Dry Cropland
File No #
Improvement Analysis
Item: Impt. #1 Impt. #2 Impt. #3 Impt. #4 Impt. #5 Impt. #6 Impt. #7 Impt. #8 Impt. #9 Impt. #10
Type
Size
Unit
Utility
Condition
Age
% Functional Obsolescence
% External Obsolescence
Total RCN $ Total Improvement Contribution: $ Improvement As % of Price %
C o
m m
e n
20 15 32
241,100 163,948 66
Lot has frontage on Chruchill Road. Living area is above the garage. The garage is 2,200 sf, finished, heated with 16' ceilings, two large bay doors,
400 amp 3 phase power, its own bath with tile shower and office. Living area is two bedroom, two bath, with forced air heat, hardwood floors, tile
floors, vaulted ceilings, walk in closets, surround sound, smart wiring, and air condition. Deck on north side of house overlooking farm ground and
the Bridger Mnts. No covenants. Horses are allowed as is a home business.
43 53©1998-2014 AgWare, Inc. All Rights Reserved.
UAAR®
UAAR®
File No #
Sales Comparison Approach - Land Adjustment for Sale# 3 Adjust each sale to the subject's land mix (land adjustment) using unimproved sales. This page allows for a "quantitative land adjustment" only.
Sales Comparison - Sale #3 Land Adjustment Amt. $
Land Use Sale Acres $/Acre Sale Unit Type Sale Units $/Unit Subj. Acres $/Acre Subj. Units $/Unit Total
Sale Land Contrib. / Eff. Unit Size = Total / Eff. Unit Size =
Sales Comparison Approach - Improvement Adjustment for Sale# 3 Compare each set of sale improvements to the subject improvements making judgments regarding utility and condition. Then arrive at an improvement adjustment for each sale on a per acre or per unit basis. These adjustments are shown on the Sales Comparison Grid. Note: Appraiser must manually enter the $/Unit for the Subject Improvements -- either individually or as a lump sum.
Sales Comparison - Sale #3 Improvement Adjustment Amt. $: /
Sale Impt. Utl/Cond. Size X $/Unit Contrib. Value Subject Impt. Utl/Cond. Size X $/Unit Contrib. Value
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
/ X $ =$ / X $ =$
Total Improvement Value = $ / Total Improvement Value = $ /
Page of
Leases
Recreation
3 -162,500.00 Site
1.00 162,500
162,500.00 Site
UAAR®
Grantee Other Contrib. Primary Land Use
Deeded Acres Net Sale Price
Sale Date/DOM / $/Deeded Acre
Prior Sale Date Financing
Analysis Code CEV Price
Source SCA Unit Type
Motivation Eff. Unit Si